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#729907 - 05/10/07 04:53 PM Reg E and Out of Compliance Claims
NordicMiss Offline
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Minneapolis, MN
Is there a general concensus on what a bank must do if they miss certain requirements of Regulation E? For example, if provisional credit was never given on a claim, but should have been, and the claim is ultimately denied - should the claim actually have been paid because the bank failed to meet their provisional credit requirements? Or, if a bank fails to meet the final investigation timeframes (45 or 90 days), would the claim then have to be paid, regardless of the eventual outcome of the bank's investigation?
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#730263 - 05/11/07 11:41 AM Re: Reg E and Out of Compliance Claims NordicMiss
M&M Offline
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Midwest
I've often wondered about this as well. We recently received a notice from our regulator after they reviewed a complaint that was filed. We were notified we missed the timeframe for the final response letter, however we were not required to reimburse (we denied the claim). Hope that helps.

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#730745 - 05/11/07 06:25 PM Re: Reg E and Out of Compliance Claims M&M
John Burnett Offline
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If you detect shortcomings (or an auditor does so) in your Reg. E error resolution compliance, about all you can do is determine why the problem exists, and then take action (training, retraining, process changes, etc.) to correct the problem for the future.

To the best of my knowledge, regulators aren't trying to make thumbs up or down decisions on claims for you. They are concerned with the process. If you get called to task for an outcome, it's more likely to be in the form of a claim from your customer, and it could involve a courtroom.
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#739735 - 05/24/07 05:31 PM Re: Reg E and Out of Compliance Claims John Burnett
OCCSPY Offline
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John - I could have sworn that in times past we have been advised through this forum or in the BOL webinars that we should reimburse customers if we exceeded Reg E investigation time frames. That has been the stance I have taken in my reviews, so the discussion on this topic now has me confused. Is it your advice to take each case on it's own merits based on information we have to approve or deny a claim that may have exceeded the time frames? Perhaps I just imagined the recredit advice.

Fortunately, we have very few such cases although, due to the nature of our business, we process many Regulation E claims.

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#740745 - 05/25/07 06:02 PM Re: Reg E and Out of Compliance Claims OCCSPY
John Burnett Offline
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There is a difference between a control that requires your staff to resolve a claim within the time limits or pay it, and what I'd recommend doing if you learn that your bank is missing the deadlines. I took the question to aim at the latter.
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#741119 - 05/25/07 08:33 PM Re: Reg E and Out of Compliance Claims John Burnett
Andy_Z Offline
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If you miss a deadline, I don't believe you automatically have to pay the claim.

If you have a problem resolving a claim on time, that is one issue that has to be addressed. If the investigation says "they never lost their card, a PIN was used for the withdrawal, claim denied" you may have to go back and re-evaluate the claim because that is a sufficient information base on which to deny a claim. That is a separate issue to be addressed.

The intent is to figure out what the problem really is, and resolve it.
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